Price

darren · 03-31-06, 07:52 AM

When deciding on what price to charge for things on the web, do you price them to be inline with similar things in your country or to be inline with other online stores even though the cost of living is a lot lower on many countries.

kris · 03-31-06, 08:49 AM

I typically just price in comparison with other online businesses in my industry since clients can be from anywhere.

Mike C · 03-31-06, 07:43 PM

Quote:

Originally Posted by kris

I typically just price in comparison with other online businesses in my industry since clients can be from anywhere.

Exactly. I try to beat most of the businesses, but still keep my prices from being too low.

Rogue · 04-02-06, 03:18 AM

Price them with your demographic and target audience. If you are targetting to a specific country, or a specific crowd, make it so that they can afford it. See what sort of competition you have, or what sort of other businesses that your crowd may be buying from.

If you're targeting Country A, and would be the primary provider for Product X, charge what you feel is correct. It is very difficult to compete on a global level when, like you say, Country A's cost of living is lower the Country B. So Country C is able to sell to whomeever.

If you want just Country A, then tailor it just for them. Otherwise, if you want to target both A and B, you'll have to beat out the prices of C.

Make sense? Hope I didn't lose ya somewhere within that.

anne · 04-13-06, 06:18 AM

If you charge too little, a lot of people will fear the quality of your product. I would charge what you think people expect to pay.

I pay more than I should for my hosting, because the company offers top class support. I know that there are other cheaper alternatives out there (that could even have good support as well) but previous experiences have made me buy into the whole 'you get what you pay for' thing.

**Baby Boy** · 04-13-06, 11:59 AM

I do mines in a simple method, I take the retail price and the wholesale price and subtract them. Whatever the answer to that is, I divide it by 2... then take that answer and subtract it from the retail price again. So I'm only losing half of the profits in a way. I do this sometimes (with specials ONLY) so I'm not always losing profits.

GlobalWebDan · 04-22-06, 04:15 PM

Hmmm, I think you're going about pricing in the wrong way altogether. Here is how we have priced our services:

1. Determine what our costs will be in selling and providing the service
2. Determine our target market and the value this group can derive from our services
3. Price our products according to the expectations of our target market, raising the prices above this expectation only if necessary to satisfy our costs

Nowhere in our pricing methods do we involve what others in our industry (Web hosting) price their services at. I think this is a wise move for any serious company. Remember, price for value, not for competition.